DIRECTV 2005 Annual Report Download - page 46

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THE DIRECTV GROUP, INC.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SUMMARY DATA
Years Ended December 31,
2005 2004 2003
(Dollars in Millions, Except Per
Share Amounts)
Consolidated Statements of Operations:
Revenues ..................................................... $13,164.5 $11,360.0 $9,372.2
Operating Costs and Expenses, exclusive of depreciation and amortization expense shown
separately below
Broadcast programming and other costs of sale ........................... 5,485.3 4,996.5 4,510.5
Subscriber service expenses ....................................... 981.9 779.9 656.5
Subscriber acquisition costs:
Third party customer acquisitions ................................ 2,053.9 2,009.8 1,439.6
Direct customer acquisitions .................................... 697.7 694.0 395.4
Upgrade and retention costs ...................................... 1,117.0 1,002.4 412.0
Broadcast operations expenses ..................................... 254.1 196.7 197.3
General and administrative expenses ................................. 1,133.9 1,268.9 1,143.5
(Gain) loss from asset sales and impairment charges, net .................... (45.1) 1,693.2 —
Depreciation and amortization ........................................ 853.2 838.0 754.9
Total Operating Costs and Expenses ............................ 12,531.9 13,479.4 9,509.7
Operating Profit (Loss) ............................................. 632.6 (2,119.4) (137.5)
Interest income .................................................. 150.3 50.6 28.4
Interest expense ................................................. (237.6) (131.9) (156.3)
Reorganization income (expense) ...................................... — 43.0 (212.3)
Other, net ..................................................... (65.0) 397.6 —
Income (Loss) From Continuing Operations Before Income Taxes, Minority Interests and
Cumulative Effect of Accounting Changes ............................... 480.3 (1,760.1) (477.7)
Income tax (expense) benefit ......................................... (173.2) 690.6 104.3
Minority interests in net (earnings) losses of subsidiaries ........................ (2.5) 13.1 (1.9)
Income (loss) from continuing operations before cumulative effect of accounting changes . . . 304.6 (1,056.4) (375.3)
Income (loss) from discontinued operations, net of taxes ....................... 31.3 (582.3) 78.1
Income (loss) before cumulative effect of accounting changes .................... 335.9 (1,638.7) (297.2)
Cumulative effect of accounting changes, net of taxes .......................... — (310.5) (64.6)
Net Income (Loss) ............................................... $ 335.9 $ (1,949.2) $ (361.8)
Basic and Diluted Income (Loss) Per Common Share:
Income (loss) from continuing operations before cumulative effect of accounting changes . . . $ 0.22 $ (0.77) $ (0.27)
Income (loss) from discontinued operations, net of taxes ....................... 0.02 (0.42) 0.06
Cumulative effect of accounting changes, net of taxes .......................... — (0.22) (0.05)
Net Income (Loss) ............................................... $ 0.24 $ (1.41) $ (0.26)
Weighted average number of common shares outstanding (in millions)
Basic ..................................................... 1,388.4 1,384.8 1,382.5
Diluted .................................................... 1,394.8 1,384.8 1,382.5
December 31,
2005 2004
(Dollars in Millions)
Consolidated Balance Sheet Data:
Cash and cash equivalents .................................................. $3,701.3 $ 2,307.4
Total Current Assets ...................................................... 6,096.4 4,771.1
Total Assets ........................................................... 15,630.2 14,324.4
Total Current Liabilities ................................................... 2,828.1 2,694.5
Long-Term Debt ........................................................ 3,405.3 2,409.5
Total Stockholders’ Equity .................................................. 7,940.0 7,507.1
Reference should be made to the Notes to the Consolidated Financial Statements.
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